FIN 370 Week 5 Final Exam

FIN 370 Week 5 Final Exam - Final Exam Fin 370 When...

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Final Exam Fin 370 When complete, please submit your answers to your individual forum. DO NOT discuss this with any other person -- this is an individual final exam!! For the true false answers only submit the question number and answer -- do not include the question in your answer sheet. For other questions/problems, please show all of your work for full credit. One Excel attachment is preferred -- do not send in more than one attached file. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. (2 points total) 1. Profit maximization stresses the efficient use of timing and risks. F 2. Financial assets are tangible assets such as houses, equipment, and inventories. F 3. The sustainable rate of growth represents the rate at which a firm’s sales can grow if it wants to maintain its present financial ratios and does not want to resort to a sale of new equity shares. T 4. Business risk refers to the relative disperses in the firm’s expected earnings after interest and taxes. F 5. New capital-budgeting projects are always new products taken to market. F 6. The stock of cash is a type of inventory. T
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7. If an asset is sold above depreciated value, it may be used to offset gains and thus result in tax savings. F 8. Free cash flow is the cash flow in excess of that required to fund all projects with positive and negative net present value when discounted at the relevant cost of capital. F 9. The Euro eliminated exchange costs and exchange rate fluctuations. T 10. The foreign exchange market is like the New York Stock Exchange because they are both physical entities. F
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FIN 370 Week 5 Final Exam - Final Exam Fin 370 When...

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